This morning with Silver (and Gold) down, LOTS of people were rushing to buy physical Silver. If you want to buy physical Silver and not store it yourself, there is no better place I know of that BullionVault (assuming you are OK with the shared bar format, if you want your own physical bars and/or coins, see Hard Assets Alliance Review).
To show you the process and the commissions paid to buy Silver at BullionVault we have the emails that were sent to confirm.
Buying Silver at BullionVault Using Order Wizard for Market Price
Buying Silver somewhere else about all you will ever get is market price, but with BullionVault you can buy with limit order, and in fact we placed some limit orders on Gold at BullionVault this morning also.
For the Silver today, the client wanted the order to fill, just in case this take down in price below $30 per ounce was going to brief, as so many other precious metals takedowns have been over the last few years.
So the using the wizard we setup a trade for US$5000 (approximately) in Silver stored in London by telling the wizard that we wanted $5050 to be the price of our trade. We went over by $50 simply because of past experience.
As you can see in the screenshot above left, $50 was about perfect to get a transaction of $5000 worth of Silver, not including commission.
The commission is just about 2%, or in this case $25. Compared to the spot price of Silver, the price quoted in the screenshot is about $0.28 higher which is less than 1%.
Yes, buying precious metals costs money, you and I aren’t going to buy it for spot without paying a spread and a commission of SOME type.
BullionVault, we have found, is the cheapest of anyone we have tried or investigated.
Emails Confirming The Order To Buy Silver At BullionVault
All orders at BullionVault are:
- Converted into kilos
- Confirmed by email
Here is what was sent to confirm the order:
Your order request has been received. The details are as follows:
Security: Silver kilos in London vault
Instruction: Buy 5.186kg @ USD 964.00/kg
Date: February 15, 2013 9:47:59 AM CST
This order is a bid placed by you. It may or may not find a matching offer in the market.
Now, it SHOULD get matched (and it did, immediately) since the wizard put in the numbers for us, but it is a market so it’s not guaranteed at that price.
We then quickly received 3 emails detailing the actual trade, as it happened in 3 chunks apparently. This is just the first:
In accordance with the order instruction ######### on your BullionVault account ‘{Account Name}’ we advise you of the following deal:
Security: Silver kilos in London vault
Instruction: Buy 1.397kg @ USD 959.00/kg
Deal time: February 15, 2013 9:47:59 AM CST
Consideration: USD 1,339.73
Commission: USD 6.70
Total cost: USD 1,346.43
In this deal BullionVault was acting as principal**.
Your order has not yet been completed within the limits you instructed. It remains on the BullionVault order board and further deals may occur. You will receive your contract note covering the entire order either when it completes or is cancelled.
** Where acting as principal BullionVault was itself the seller of
bullion to you. Because of this we remind you of our terms:
We confirm that the price paid to BullionVault was lower than
or equivalent to any contemporaneous alternate offer by another
customer, and – if equivalent – was openly offered by BullionVault
before any alternates. BullionVault traders are subject to the
same market rules and priorities as every other BullionVault client.
Then, somewhat later, an email came in with a PDF file attached of the complete transaction.
Silver won’t stay this cheap forever
We highly recommend BullionVault. Open an account now and they will give you a few grams of Silver for FREE.
